Credit: Rivian Automotive

Goldman Sachs raises Rivian’s 2022 production guidance from 22,000 to 23,500 units

Written by Cláudio Afonso | | LinkedIn | Twitter

Goldman Sachs analyst Mark Delaney issued on Thursday a new note on Rivian Automotive commenting on the company’s production and deliveries results announced on Wednesday. Delaney says the supply chain challenges — particularly for semiconductors — are still affecting Rivian and the whole industry but expects “a gradual improvement” during the summer.

On Wednesday, Rivian reported 4,401 vehicles produced at its manufacturing facility in Normal (Illinois) during the second quarter of 2022 and the delivery of 4,467 vehicles. The electric vehicle maker said the numbers are “in line with the company’s expectations, and it believes it is on track to deliver on the 25,000 annual production guidance previously provided.


The analyst enhanced that the 4,467 vehicles delivered during Q2 2022 “reduces the degree of acceleration needed in 2H to meet full-year production guidance” of 25,000 units. Delaney added that it will also increase investors’ confidence “that the company can grow deliveries further in the intermediate to longer-term”.

“While we believe supply chain challenges, particularly for semiconductors, continues to limit production for both Rivian and the industry more broadly in the near-term, we expect some gradual improvement in semiconductor availability over the summer, a more meaningful increase later in 2022, and further improvement in 2023,” Delaney added.

Last week, RBC Capital analyst Joseph Spak released a new note reiterating the $77 price target and the Outperform rating on Rivian shares. The analyst expects Rivian to deliver 3,600 vehicles in the second quarter, slightly above the consensus estimates.

Recently, Rivian announced that opened three fast charging sites this week in Colorado and California, “the first deployments in its nationwide Rivian Adventure Network”.

In mid-June, the company unveiled its plans for a large-scale wind turbine at its Normal manufacturing campus to provide clean energy enabling new R1 vehicles to be powered by renewables for their first charge. Earlier this year, Rivian had installed a 783-kilowatt solar canopy that is scheduled to begin generating electricity later this summer.

The wind project aligns with Rivian’s strategy of adding renewable resources to parts of the country that need them most Illinois’ grid is powered by 11% renewables and aims to reach net-zero carbon emissions by 2040, 10 years ahead of the Paris Agreement, the company stated.

Written by Cláudio Afonso | | LinkedIn | Twitter